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Goldman Admits It, Too, Was Short The Swiss Franc

Tyler Durden's picture




 

Turns out it wasn't just Goldman's muppet clients who were slaughtered by one of Goldman's "Top Trades" for 2015, when the reco to short the CHKSEK plunged 16.5% and the trade was stopped out. It was Goldman itself. From the Goldman Sachs Asset Management disclosure on the impact of the SNB floor removal:

What changed?  In recent months, SNB reserves have started to pick up (an increase of CHF400bn from Jan 10 to today), while the European Central Bank (ECB) is closer to introducing a sovereign Quantitative Easing (QE) program. Maintaining the exchange rate floor in a Eurozone QE scenario would likely have required substantial interventions by the SNB.

So in case there still was confusion, Goldman has blessed its former employee to turn on the printing presses in Europe. That much is clear.

However, this is more important:

In our portfolios with currencies, we have been short the CHF on the grounds that it was an expensive currency which we expected would experience capital outflows as European growth normalized. We were surprised by the sudden removal of the peg. Although the CHF real effective exchange rate is lower than during the European crisis of 2011, it has actually appreciated in recent months. We exited a substantial portion of our CHF short today and are monitoring the situation closely.

And yet, this makes little sense considering Goldman, in its earnings call explaining why it just had the worst FICC quarter since Lehman, also said this:

  • GOLDMAN CFO SAYS MOVE IN SWISS FRANC WAS `IMMATERIAL' TO FIRM

So who is lying? Goldman or Goldman.

 

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Fri, 01/16/2015 - 11:36 | 5670268 Money Boo Boo
Money Boo Boo's picture

some folks were short, oops!

Fri, 01/16/2015 - 11:37 | 5670273 SethDealer
SethDealer's picture

Je Suis Rich

Fri, 01/16/2015 - 11:39 | 5670301 waterwitch
waterwitch's picture

Fuck Goldman

Fri, 01/16/2015 - 11:44 | 5670324 whotookmyalias
whotookmyalias's picture

Goldman, LOL.  They'll get back anything they lost and more by fucking someone else.

Fri, 01/16/2015 - 11:46 | 5670347 BaBaBouy
BaBaBouy's picture

WHAT Aren't The Sacks Folks Not Short On ?????

Fri, 01/16/2015 - 11:50 | 5670357 BaBaBouy
BaBaBouy's picture

Hehehehe Je Suis GoldMan...$$$$$

Fri, 01/16/2015 - 11:56 | 5670394 Richard Chesler
Richard Chesler's picture

Immaterial to the firm, thank you suckers errr... taxpayers.

Fri, 01/16/2015 - 12:02 | 5670432 PrayingMantis
PrayingMantis's picture

 

 

... 'Why are government employees filing a civil suit against Goldman Sachs? That's just going to be embarrassing in a few years when they all go back to work at Goldman Sachs.’ ~ Stephen Colbert

Fri, 01/16/2015 - 12:06 | 5670451 Troll Magnet
Troll Magnet's picture

Fuckin' shylocks lie 24/7/365.

Fri, 01/16/2015 - 13:06 | 5670711 outamyeffinway
outamyeffinway's picture

"and are monitoring the situation closely."

 

I feel better already.

Fri, 01/16/2015 - 11:51 | 5670370 Temporalist
Temporalist's picture

Muppet blood.

Fri, 01/16/2015 - 11:46 | 5670331 NoDebt
NoDebt's picture

"GOLDMAN CFO SAYS MOVE IN SWISS FRANC WAS `IMMATERIAL' TO FIRM"

Of course it was immaterial to the firm.  It wasnt their money.

Fri, 01/16/2015 - 14:24 | 5671098 KnuckleDragger-X
KnuckleDragger-X's picture

BOHICA should be fairly applied....one way or another....

Fri, 01/16/2015 - 11:45 | 5670339 Kaiser Sousa
Kaiser Sousa's picture

DEATH TO THE MONEYCHANGERS.

 

 

and yes - FUCK MOTHER FUCKING GOLDMAN.

Fri, 01/16/2015 - 11:44 | 5670310 eclectic syncretist
eclectic syncretist's picture

Goldman is part of the Cartel, so obviously they will lie and say they got hurt by the move, when in reality it was done the way it was because it was an intentional takedown of smaller competitors.  The brokerages that went bust will now have all their business absorbed by Goldman, JPM, and the other cartel members.  This is one of the TRUE MANDATES of Central Banks, not the fantasyland mandates of max employment and price stability, which are just a smokescreen.

Fri, 01/16/2015 - 11:53 | 5670381 whotookmyalias
whotookmyalias's picture

And thus the true reason behind the 2nd Iraq war, but I digress.

Fri, 01/16/2015 - 16:53 | 5671824 SDShack
SDShack's picture

So true, but beware when there are no more little ones left for the big boys to take over. When the big boys start feeding on each other, you will know the sociopathic game is in its death throws. Of course the sheeple will be long since fleeced of everything by then... or worse.

Fri, 01/16/2015 - 11:39 | 5670297 RaceToTheBottom
RaceToTheBottom's picture

Nothing is "Material" when you have a conduit to the printing presses.

Fri, 01/16/2015 - 11:58 | 5670416 Disc Jockey
Disc Jockey's picture

Tyler the Vampire Squid is hilarious. Well done!

http://en.m.wikipedia.org/wiki/Vampire_squid

Fri, 01/16/2015 - 12:16 | 5670493 Gazooks
Gazooks's picture

poor fucking squid

Fri, 01/16/2015 - 11:59 | 5670421 orez65
orez65's picture

It is very, very hard to believe that JP Morgan, Goldman Sacks, the Fed etc were not aware of what the Swiss were going to do.

Fri, 01/16/2015 - 13:16 | 5670749 NotApplicable
NotApplicable's picture

However, looking for a break in the loyalty chain is a good thought exercise, as some club members might just now be discovering that they've been set-up as the next fall guy.

Damn those ambiguous terms and conditions!

Fri, 01/16/2015 - 12:35 | 5670578 ZH Snob
ZH Snob's picture

goldman might have been short, but I'll bet Lloyd got the inside word and adjusted his portfolio accordingly.

Fri, 01/16/2015 - 16:13 | 5671647 Dugald
Dugald's picture
Goldman Admits It, Too, Was Short The Swiss Franc....No No No,

it is...... GOLDMAN ADMITS,  IT TOO,  WAS SHOR....... Now do you get it??

Fri, 01/16/2015 - 11:38 | 5670276 Dr. Engali
Dr. Engali's picture

Bail out in 3....2....1.....

Fri, 01/16/2015 - 11:37 | 5670277 ekm1
ekm1's picture

As I've said over and over and over:

Bank lobby is receiving hit after hit after hit after hit.

 

Neocons are back, bank lobby is being shown the door.

Neocons have plenty of revenge to take on bank lobby for being decimated by bank lobby's man, obama.

Fri, 01/16/2015 - 11:47 | 5670348 NoDebt
NoDebt's picture

At this point, I damned near hope you're right about that.  "At least the trains ran on time."

Fri, 01/16/2015 - 11:59 | 5670425 sessinpo
sessinpo's picture

I think that is silly. There are no neocons in power. The ones in power are still progressives of both parties.

The bank lobby heavily donates and owns both sides.

What worries me is having someone like Elizabeth Warren taking political advantage of the situation. She and 99% of the other politicians can't be trusted. But she will ride the populist wave.

Yes, banks need to be downsized as well as their political influence. But quite, in a modern society, there will always be some form of bank or money lenders (changers).

Fri, 01/16/2015 - 12:08 | 5670457 SickDollar
Fri, 01/16/2015 - 12:09 | 5670465 Tao 4 the Show
Tao 4 the Show's picture

Its a fascinating idea, ekm1. I will watch for your further thoughts and evidence for this

Fri, 01/16/2015 - 12:11 | 5670473 geekz_rule
geekz_rule's picture

lol...

you imply neocons aren't banksters? seriously.. I know your smarter than that...

neocons are zionazis. banksters are zionazis.

any questions?

Fri, 01/16/2015 - 12:53 | 5670650 Element
Element's picture

Pretty sad wasn't it, he had to repeat it several times to make sure everyone got the silly hook.

I've seen an EKM before but not and EKM1 though (28 weeks in zh).

"As I've said over and over and over: ..."

So that's his repeated message ... stay on message.

Fri, 01/16/2015 - 13:00 | 5670681 chunga
chunga's picture

Makes me wonder what is going on with Petraeus.

Fri, 01/16/2015 - 11:37 | 5670278 Hulk
Hulk's picture

Best news I have heard all day...

Fri, 01/16/2015 - 11:40 | 5670283 Government need...
Government needs you to pay taxes's picture

The Goldman BalSack takes a gentle muppeting.  Altho it remains unclear whether the Sack was net long Swissie exposure.

Fri, 01/16/2015 - 12:20 | 5670512 Number 156
Number 156's picture

Agree.

And..

"We exited a substantial portion of our CHF short today and are monitoring the situation closely."

How about exiting all of it? (Unless yes, you're net long).

If not, there's always corporate welfare to bail your sorry asses out.

Fri, 01/16/2015 - 12:38 | 5670588 Urban Redneck
Urban Redneck's picture

They're professionals- if the hedge on the original position is paying off right now, they lighten the original trade and use the balance to hedge the hedge, which is now the primary trade.

Fri, 01/16/2015 - 11:40 | 5670293 chubbar
chubbar's picture

I'm stunned by the statement that they thought EU growth would "normalize"? What fucktard came up with that idea and what data was he reading when it happened?

Fri, 01/16/2015 - 11:47 | 5670349 QQQBall
QQQBall's picture

+1 Nice catch Chubbar

Fri, 01/16/2015 - 11:58 | 5670423 ThisIsBob
ThisIsBob's picture

... and what was he smoking?

Fri, 01/16/2015 - 14:09 | 5671037 Government need...
Government needs you to pay taxes's picture

Normalize, what does that word mean?  Converge @ 0.5%, drop to -4% for 10 years, or skyrocket in flight, afternoon delight?

Fri, 01/16/2015 - 11:40 | 5670295 Eternal Complainer
Eternal Complainer's picture

Who is lying?

Goldman naturally!

Fri, 01/16/2015 - 11:39 | 5670298 TrulyStupid
TrulyStupid's picture

You mean there are certain things outside the control of the Great Squid?

Fri, 01/16/2015 - 11:40 | 5670303 replaceme
replaceme's picture

<<insert Harry Mudd lying quote here>>  

Fri, 01/16/2015 - 11:40 | 5670304 Smuckers
Smuckers's picture

It pleases me to think of these folks gingerly walking around with a Toblerone rammed up their ass.

 

Fri, 01/16/2015 - 11:43 | 5670321 Yen Cross
Yen Cross's picture

  The SNB should threaten to print if they're worried about the CHF strength after the ECB-qe. Everyone is long the CHF now so it would be a massive move back lower as all the stops get taken in the other direction.

   Jordan could get some good jawboning in before he actually had to act because the markets are afraid of him now. It's easier for SNB to sell their currency then having to proxy buy it via the euro.

Fri, 01/16/2015 - 11:50 | 5670358 NoDebt
NoDebt's picture

"Jordan could get some good jawboning in before he actually had to act because the markets are afraid of him now."

I think that's a great point.

Fri, 01/16/2015 - 11:44 | 5670334 PrayingMantis
PrayingMantis's picture

 

 

... "Well, just four days after Goldman Sachs cost investors $12 billion by failing to tell them that they're being investigated for fraud, they gave out another $5.4 billion in bonuses. Huh? Even Somali pirates are going, 'Come on!'" ~ Jay Leno

 

 

Fri, 01/16/2015 - 11:46 | 5670338 Panic Mode
Panic Mode's picture

The *muppets* will pick up the losses.

Fri, 01/16/2015 - 11:47 | 5670341 medium giraffe
medium giraffe's picture

Would have thought they were on both sides of the trade.  Pretty sure the whole circus basically boils down to Goldman buying and selling shit to itself.

Fri, 01/16/2015 - 11:48 | 5670350 basho
basho's picture

"So who is lying? Goldman or Goldman. "

this time it is Sachs

Fri, 01/16/2015 - 11:49 | 5670364 NoDebt
NoDebt's picture

Never could trust that guy Sachs.  Shifty eyes.  Small hands.

Fri, 01/16/2015 - 11:49 | 5670356 Son of Captain Nemo
Son of Captain Nemo's picture

Washington's/Tel Aviv's ISIS does Geneva?....

Fri, 01/16/2015 - 11:49 | 5670362 George Soros
George Soros's picture

Amateurs. Should have bought the DAX instead and short SMI

Fri, 01/16/2015 - 11:51 | 5670363 Crazy Canuck
Crazy Canuck's picture

Ok so "everyone" is getting hammered - bullshit - who 1) is making money - and who 2) really cleaned up by knowing about this in advance.....

 

Fri, 01/16/2015 - 11:54 | 5670393 Winston Churchill
Winston Churchill's picture

That would be the SNB.

The ultimate insider trade.

Fri, 01/16/2015 - 11:50 | 5670366 Greenspazm
Greenspazm's picture

So how about "Fuc To Market" ? I guess we'll hear crowing again in this weekend's propaganda pieces...if his Merchant Bank is still solvent.....

Fri, 01/16/2015 - 11:56 | 5670399 Quinvarius
Quinvarius's picture

CHF was an expensive currency?  Really?  What a clown show.

Fri, 01/16/2015 - 11:55 | 5670403 e_goldstein
e_goldstein's picture

Disgraceful, employees of the Squid losing money for the Squid.

Open the windows and JUMP YOU FUCKERS!

 

Fri, 01/16/2015 - 12:02 | 5670414 NuYawkFrankie
NuYawkFrankie's picture

Knew I shouldn't have got involved with fx trading - but at least my core investments are safe with Long Term Capital... phew!

Fri, 01/16/2015 - 12:17 | 5670497 writingsonthewall
writingsonthewall's picture

Good move son, you can't lose that one - I heard it's run by nobel prize winners.

 

We all know that a badge is a sign of SECURITY - don't we? I mean that's what these badges are for - aren't they????

 

ROFL

Fri, 01/16/2015 - 12:33 | 5670576 NuYawkFrankie
NuYawkFrankie's picture

re Good move son, you can't lose that one ..

Thanks for your "vote of confidence" ;)

Yes, if I've learned one lesson it's: Do your Due Diligence &  then Leave it to the "Experts"

Fri, 01/16/2015 - 12:01 | 5670433 buzzsaw99
buzzsaw99's picture

The immaterial has become... immaterial. [/Lord Cutler Beckett]

Fri, 01/16/2015 - 12:03 | 5670435 numapepi
numapepi's picture

Why not play the FX casino? Goldman is TBTF, which means they win no matter how they bet... because you and I will be forced at gunpoint to bail them out if they loose, again and again.

Time to address TBTF!!

http://incapp.org/blog/?p=1861

Fri, 01/16/2015 - 12:26 | 5670547 slightlyskeptical
slightlyskeptical's picture

I will see you all at Dollar, Euro and Franc parity.

Fri, 01/16/2015 - 12:53 | 5670652 orangegeek
orangegeek's picture

Who's jumping first GS?  ZHers want to know!!!

Fri, 01/16/2015 - 13:15 | 5670760 goosee
goosee's picture

No problem they still have the state sanctioned OPEX fix to set it all straight. I mean if it was all fixed it would be...uh..fixed right?

Fri, 01/16/2015 - 13:37 | 5670881 Archetype
Archetype's picture

"during the European crisis of 2011"

 

It never ended you fucking morons, it got worse! Semantics isn't gonna help you this time. As an ordinary muppet I have no clue about exactly whats going on here, but what I do hope is that the SNB shoved a big fuckin dick right up Draghis and GS ass.

 

I am probably dead wrong but I have to belive it to maintain sanity while these mentaly challanged meat heads keep flapping their mouths.

 

So happy I ended my FX account a couple of years ago.

 

Fuck you Draghi, Fuck you Goldman!

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